Asian markets edged toward the weekend on Friday after receiving a lukewarm cue from Wall Street. Initially buoyed by the more accommodative stance of the U.S. Federal Reserve, sentiment was overshadowed by persistent concerns over President Donald Trump’s tariff plans.
Traders found encouragement in remarks made by U.S. Federal Reserve Chair Jerome Powell, who suggested that the effects of significant tariffs applied to imports from major trading partners were expected to be temporary. Additionally, officials’ projections indicated they do not anticipate an anticipated economic downturn occurring within the current year.
This occurred just days following China announced various initiatives intended to stimulate consumer expenditure and revitalize the globe’s second-largest economy.
Nevertheless, Trump's aggressive trade strategies keep casting a long shadow, maintaining restraint on market sentiment and risk-taking tendencies.
As central banks in the United States, Japan, Britain, and Sweden concluded their meetings without significant announcements or changes to monetary policies, attention has shifted back to trade tariffs. The new round of tariff increases is set to take effect at the beginning of April.
The unpredictability regarding U.S. policies—where the White House introduces, postpones, and subsequently reinstates tariffs without warning—has compelled traders to adopt a more cautious approach.
Equity investors are once again concentrating on the uncertainties and potential adverse effects of a trade war," stated Rodrigo Catril from National Australia Bank. "The sentiment is still delicate as investors remain anxious and uncertain about whether they should be taking on more risks or reducing them.
The major shadow hanging over us is tariff unpredictability, particularly with the upcoming release of the America First Trade Report scheduled for April 2nd.
During early trading, stocks in Hong Kong, Shanghai, Singapore, Taipei, and Manila remained below water, whereas Tokyo, Sydney, Seoul, and Wellington saw slight gains.
Concern over the future prospects continues to drive up gold prices as investors look for safety amid market turbulence. On Friday, the price of gold remained just under the all-time high of $3,057.49 per ounce reached on Thursday.
Oil prices were increasing due to escalating geopolitical tensions, with Israel intensifying assaults in Gaza and U.S. forces targeting Iran-supported Houthi rebels in Yemen.
The news that Washington had imposed sanctions on a China-based oil refinery for purchasing approximately $500 million worth of Iranian oil through vessels linked to the Houthis exacerbated worries among traders.
Following his return to office, Trump has reinstated his strategy of "maximum pressure" targeting Tehran. He has already imposed sanctions on multiple individuals and organizations, among them Iran’s Oil Minister.
Key individuals at approximately 0230 GMT
Tokyo - Nikkei 225: Increased by 0.4% to reach 37,890.42
Hong Kong - Hang Seng Index: Down 0.2% at 24,167.75
Shanghai - Aggregate: DECREASED BY 0.1% TO 3,406.67
Euro/dollar: FALLING to $1.0854 from $1.0856 on Thursday
Pound/dollar: DECREASED to $1.2966 from $1.2967
Dollar/Yen: Increased to 149.15 yen from 148.76 yen
Euro/pound: INCREASED to 83.74 pence from 83.72 pence
West Texas Intermediate: Increased by 0.7% to reach $68.51 per barrel.
Brent North Sea Crude: Increased by 0.6% to $72.40 per barrel
New York - Dow: Fell by less than 0.1 percent to close at 41,953.32 points.
London - FTSE 100: Down by under 0.1 percent to close at 8,701.99
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